Money matters when purchasing a house and land package.

We all know there is an array of lenders on the market offering a huge variety of home loan products, but did you know that financing a house and land build is usually a little different than if you buy an established home?

Whilst you will still require the same checks and balances as with a standard mortgage for an established home, it is the structure of the loan that will differ.

Usually, a lender will provide you two steps to the process of obtaining a mortgage for a house and land package. This two-step process allows for settlement to occur on the land first, with a mortgage registered on the title.

Step 1 You will buy the land with one loan, the mortgage loan that you are most likely familiar with.

Step 2 Then you will build the house with another, known as the Construction loan. Commonly they are bundled together with the same lender.

One of the main benefits of this split loan approach is a Construction loan allows you ‘draw down’ an agreed amount to pay for each stage as your home is built. That way, you only pay interest on the money you’re using at each stage until the home is built.

House and Land package finance and affordability.

Nowadays there are many online tools and calculators to help you assess your home loan affordability and borrowing capacity. Don’t forget when calculating your budget to allow funds for costs outside the sticker price of the house and land package, these include Government (stamp duty) Conveyancing and Lender fees and insurance, these of course will vary by which state your land is located, who your lender is and value of your package.

If finance is not your thing there are many Mortgage brokers that are willing to do the hard work for you and walk you through the process of financing your purchase of a house and land package. It’s never been easier to find a local Mortgage broker, but if you are looking for a tried and trusted broker we recommend Glen Polley at Own It Finance.

Getting your finances sorted early on in the process mean’s you can relax and look forward to the next step with confidence – house and land package shopping!

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Testimonials

“Customer service means a lot to us and from the moment we walked into the Achieve Homes Display Home, their sales team were welcoming and professional. They explained the process to us quite easily and made the purchase experience a pleasure. It was evident from this moment that Achieve Homes would go above and beyond for their clients which solidified our choice. We also really appreciated the expert advice they provided on our structural design and colour selections. They were also extremely approachable via email at anytime throughout the build and this was reassuring for us. Achieve Home’s customer service was also exemplified when we were able to meet our foreman who from the very first moment of our build continued to explain all processes and keep us up to date by answering all our questions and concerns and providing professional advice throughout the entire building process. Not only did they do an amazing job on our house but they also made it feel like a home due to the kindness and compassion they showed us as a family during the build.

For first home buyers Achieve Homes made the process very simple and to a great standard. The customer service really shows that Achieve is more than a standard building company and we thoroughly enjoyed the entire experience. We can’t wait to be in our new house!”

“We loved seeing the frame up made it look like a house and feel real. Achieve Homes was fantastic at each site inspection. They explained everything to us and answered all of our questions very patiently. It was very exciting for us to see the house progress. They were also fantastic at keeping us updated and making sure the paperwork was on track.”

“The process from beginning to end has been very organised. The ‘one-stop shop’ for making selections was perfect and took all the hard work away from running around Canberra.”